The #1 Reason Consumers Sell Their Structured Settlements Is to Pay Bills, According to Survey by J.G. Wentworth : Current financial environment seen as catalyst for sales of ‘illiquid financial assets’


BRYN MAWR, Pa. (PRWEB) October 28, 2008

The survey represents some of the most concrete insights on the attitudes of the estimated 2 million Americans who hold some $ 100 billion in structured settlements. Structured settlements were introduced in the U.S. in the 1970s as an alternative to lump sum settlements of legal claims.

“What these survey findings tell us is that consumers are looking to tap into the value of illiquid financial assets like structured settlements,” said Ken Murray, chief marketing officer for J.G. Wentworth. “Approximately 71% of the surveyed consumers selling all or part of their structured settlements have held them for more than 10 years, and we believe that the current financial environment will accelerate that trend.”

While structured settlements provide a stream of payments over a defined period, often people find they need access to their funds now, whether to address immediate financial needs like paying bills or to plan for the future by starting a business, financing home improvement or paying for college tuition for themselves or family members, Mr. Murray noted.

“Structured settlements are established for many different reasons, and attempt to take into account the potential future needs of the plaintiff while providing a reliable source of income,” Mr. Murray said. “Unfortunately, the inflexibility of this structure can make it difficult to adapt to life’s events. Selling part or all of a structured settlement offers consumers the financial flexibility they may need to deal with a problem or take advantage of an opportunity.”

About the J.G. Wentworth family of companies

J.G. Wentworth, Inc., based in Bryn Mawr, PA, is the nation’s oldest, largest and most respected buyer of deferred payments for illiquid financial assets like structured settlements, annuities and, through dedicated subsidiaries, life insurance policies. Since 1992, J.G. Wentworth has purchased over $ 3 billion of future payment obligations from consumers and is also the nation’s largest securitizer of structured settlement and annuity backed notes. The company’s notes are rated AAA by Standard & Poor’s Corporation.

For more information about J.G. Wentworth, go to http://www.jgwentworth.com.







More Securitization Press Releases

Iron Mountain and CONSOR Joint White Paper: Securitizing and Collateralizing Software Assets for the Capital Markets

La Jolla, CA (PRWEB) November 12, 2008

Iron Mountain’s Intellectual Property Management group (IPM) and CONSOR are looking for additional experts to work on a white paper titled “Securitizing and Collateralizing Intangible Software Assets” see http://www.consor.com/ironmountain/Callforexperts.doc to provide expert commentary, recommendations and practical guidance to the primary and secondary capital markets. This white paper is for the financial community that provides investments (IPO, M&A, LBO, equity or debt position, etc.) to companies that have valuable software assets. The joint white paper is planned for inclusion in the Iron Mountain Knowledge Center to complement the current white paper “Leveraging Software Assets Via the Capital Markets” (see http://www.consor.com/ironmountain/CONSOR_IronMountain_LSA.pdf).

The intangible assets owned by many enterprises today include traditional IP (trademarks, copyrights, and patents), and non-traditional IP (trade secrets and knowhow). This non-traditional IP is better known as the software inventory. Many investments today are secured using the traditional IP of the organization, but seldom is the nontraditional IP used.

Usually the question of including the software inventory may not have been addressed in the financing, or even thought of, but knowing it’s value and registered position can help manage and leverage the investment. Furthermore, regulations for mergers and buyouts mean that enterprises must estimate the value of existing software inventories anyway for financial and tax reasons, such as required by FASB 141, FASB 142 and FASB 157.

Iron Mountain provides the software inventory to be registered in its Escrow for securitization and CONSOR provides for software identification and valuation analysis. This registry and valuation services assist counsel and stakeholders get a handle on their investment.

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